How much tax do I have to pay?

Your effective tax burden is determined by tax calculation, whether it is based on income, wealth, or profit. There are significant variations in tax rates and deductions among cantons: For example, Zurich, Bern, Vaud, and St. Gallen all apply different tax rates and deductions. Several elements must be considered.

Several elements must be considered:

• Tax authority: Who is entitled to levy taxes (federal, cantonal, or municipal)?
• Tax subject: Who is liable to pay?
• Tax object: What is being taxed (income, wealth, etc.)?
• Tax base: On what amount is the tax calculated?
• Tax rate: What percentage is applied (tariff + multiplier)?
• Tax allocation: Foreign real estate is only considered when determining the rate, but it is not taxed in Switzerland.

The income and wealth tax calculation follows these steps:

1. Determine income (employment, assets, pensions, etc.).
2. Apply deductions (medical costs, work expenses, pension contributions).
3. Calculate net income.
4. Subtract social deductions (for children, singles, and pensioners).
5. Establish taxable income.

The resulting base tax is then multiplied by the cantonal tax multiplier to determine your effective tax burden.

• ‍Income and wealth tax: Based on your net income after deductions. The tax rate is progressive, meaning the higher your income, the higher the percentage.
• Withholding tax: It is deducted directly from gross salary and is especially relevant for expats and cross-border commuters.
• Corporate profit and capital tax: This tax applies to legal entities, such as GmbHs or AGs. It taxes net profit and equity.
• Value-added tax (VAT): Charged on consumption; the standard rate is 7.7%, and the reduced rate is 2.5%.
• Real estate gains tax: Levied on the sale of property; varies significantly by canton.
• Withholding tax on investment income: A 35% tax on certain types of income. A refund is possible if it is declared correctly.

Taxes in Switzerland vary by canton – and even by municipality. So a person in Winterthur may owe more or less than someone in Zurich or Lucerne, despite having the same income.

To know your exact tax, check your canton’s official calculator.

Here are the direct links to all cantonal tax calculators:

• Aargau
• Appenzell Innerrhoden
• Appenzell Ausserrhoden
• Bern
• Basel-Landschaft
• Basel-Stadt
• Fribourg
• Geneva
• Glarus
• Jura
• Lucerne
• Neuchâtel
• Nidwalden
• Obwalden
• St. Gallen
• Schaffhausen
• Solothurn
• Schwyz
• Thurgau
• Tessin
• Uri
• Vaud
• Valais
• Zug
• Zurich

Tax calculation in Switzerland is complex, especially given the variety of taxes and cantonal differences. If you are unsure whether you have completed everything correctly or claimed all possible deductions, it is worthwhile to seek professional support. With professional support, you can avoid mistakes, save time, and secure possible refunds.